Valkyrie Protocol's development and growth has a heavy reliance on the democratic process of decentralized governance led by the community. There no entities on the protocol that have admin privileges or special access. Governance is the singular method to receive temporary privileges to make any upgrades or modifications on the protocol.
Updates or changes to the underlying smart contracts of the protocol may be done so only after a successful governance vote.
Valkyrie tokens are utilized in poll voting within governance. VKR staked in the governance contract are not spent when used to vote. However, the tokens are locked for the duration of the voting period.
Voting power is in a one-to-one correspondence to the amount of VKR tokens used for a specific vote. Thus voters with a larger stake of VKR will naturally have a stronger influence on the outcome of governance proposals.
A new proposal submitted through governance undergoes a poll voting process. Any user may create a poll at any time given that they have submitted the minimum deposit amount along with the proposal. When a poll does not pass the minimum participation requirement (called the quorum), the initial deposit is not refunded to the poll creator and is distributed governance stakers pro-rata to their staked VKR.
Governance polls include the necessary information for users to make an informed decision as well as the necessary encoded information required to interact with the smart contracts (if passing the vote). If a poll passes the governance vote, the submitted information is utilized to update the necessary functions through Valkyrie governance contract.
Voting is enabled until the end of the voting period, and if the poll passes the minimum conditions (such as the quorum), the poll proposal is ratified. The proposed changes will then be updated after a pre-defined delay period. Once a poll is passed, no additional update is necessary for the smart contracts to be updated.
Furthermore, campaign creators are able to apply for the Booster Program through Valkyrie governance. If the vote passes, the relevant campaign budget will be augmented with the Booster Program rewards.
Note. VKR utilized for voting will not be withdrawable until the end of the poll. The maximum VKR utilizable in a single poll is equivalent to the total amount staked in the governance contract. Lastly, once VKR has been submitted for a vote, it may not be amended.
The procedure for a governance poll is as follows.
- 1.The minimum VKR is submitted, and the poll is created.
- 2.During the voting phase, users with VKR staked in the governance contract are able to vote on on-going proposals. The amount eligible to be used in a single vote is equivalent to the maximum staked VKR.
- 3.A snapshot of the total VKR staked in governance is taken near the end of the poll period as a basis for determining the quorum.
- 4.Once the poll period has passed, no addition votes may be cast.
- 5.The poll passes if the quorum and other major criteria are satisfied.
- 6.If the poll passes, its contents can be executed after
Execution Delay Periodblocks have passed. The poll must be executed prior to the
Execution Delay Period, otherwise it will automatically expire and no longer be considered valid.